Stalla includes interest on the numerator for fixed costs for Qbe foruma: FC/P-V Schweser I believe does not. They just use a total Fixed Cost $. Any thoughts on which one is correct?
I use Schweser and the formula I know is Q = F/(P - V)
Guys, we had learnt this in Level I as well. This one is the operating break even because it is that point of sales where the operating costs = Fixed expenses. The other formula (F+Int)/(P-V) is called the Total Break even. Once you exceed the total break even point - company would be making true profits.
use the break even function on the TI BA2. one less formula to memorize works for me.
there is two versions accoding to CFAI operating BE = F / P-V Total BE = F + I / P - V
gotcha. one is total, one is operating.